The Government is still not selling Dunav insurance company

The Ministry of Finance State Secretary Slobodan Ilic commenting unofficial announcements on Polish biggest insurance company PZU intention to purchase Dunav insurance company, the only state-owned insurance company in Serbia, and Slovenian Triglav insurance, and intention to pay for it 4.9 billion Dollars (3.2 billion Euro), Ilic says that offer is still not an official one.

“Neither has the Government or the Ministry of Finance, nor the Deposit Insurance Agency received any announcement of such interest, but the news circulated in the media are the only information we have”, Ilic is pointing out.

“The experience is teaching us that in estimating interests expressed in the media, we should be more than cautious having in mind that in the past potential candidates in the privatization process have went publicly with certain numbers for which they “allegedly” were willing to pay, and that real life failed showing that, witch led us to the conclusion that we were facing the attempt to “create appropriate ambient and general public atmosphere” aimed at grasping the best start-up position in the bid and elimination of potential competition”, said Slobodan Ilic, State Secretary at the Ministry of Finance.

The Ministry of Finance State Secretary Slobodan Ilić commenting unofficial announcements on Polish biggest insurance company PZU intention to purchase Dunav insurance company, the only state-owned insurance company in Serbia, and Slovenian Triglav insurance, and intention to pay for it 4.9 billion Dollars (3.2 billion Euro), Ilić says that offer is still not an official one.

“Neither has the Government or the Ministry of Finance, nor the Deposit Insurance Agency received any announcement of such interest, but the news circulated in the media are the only information we have”, Ilić is pointing out.

“The experience is teaching us that in estimating interests expressed in the media, we should be more than cautious having in mind that in the past potential candidates in the privatization process have went publicly with certain numbers for which they “allegedly” were willing to pay, and that real life failed showing that, witch led us to the conclusion that we were facing the attempt to “create appropriate ambient and general public atmosphere” aimed at grasping the best start-up position in the bid and elimination of potential competition”, said Slobodan Ilić, State Secretary at the Ministry of Finance.

As Ilić is pointing out, regulations regulating insurance companies’ privatization process are imposing obligation to the authorities to execute competitive selection process when choosing the best bidder, and so, this procedure will be implemented in this particular case as well. The State Secretary could not comment on media-mentioned sum of 3.2 billion Euros for possible acquisition, keeping in mind that here is the case of a possible joint acquisition with Slovenian insurance company.

“Adequate analysis will show what price range can be considered adequate for the purchase of the share of the capital that will be offered for sale, but that is to be done in the privatization subjects’ final preparation phase. In this moment, Dunav insurance company is not in that phase. But even when Dunav insurance company’s price range is estimated and known, data will not be publicized, for obvious reasons of reaching the best price and executing the competitive privatization process at best”, Ilić added.